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Connecticut tax revenue up … Until tax increases implemented 16 months ago

If you think a “balanced approach” is the right way to go, let’s take a brief look at headlines concerning Connecticut tax revenue in early 2011 as compared stories this week.

Back in April 2011, revenue projections were up. From the Connecticut Business & Industry Association (CBIA)…

Revenues for the current year are more than $600 million above the amount projected at the time the budget was passed. And although official reports have not been released as of the time of this writing, word at the state Capitol is that budget analysts are now projecting that tax receipts for the 2012 fiscal year will register $175 million higher than originally estimated.

Forty-five or so days later, things were still looking good, but the July 1 tax increases – the largest in Connecticut history – were just around the corner.

Taxpayers bracing for a new wave of state tax increases on July 1 are noticing that the state’s current revenue structure is actually doing very well and now projected to bring in nearly $1 billion more this fiscal year than first estimated.

According to the latest report of the Office of Fiscal Analysis (OFA), state taxes revenue will run $960 million more this year than budgeted. That’s $48 million higher than last month’s projection.

CBIA suggested…

Lawmakers should review carefully the revenue levels actually needed to make the state budget work, and question whether we are taking too much money out of Connecticut’s economy at a time when we need it to grow and create jobs.

Yeah, not so much. Gov. Dannel Malloy has some explaining to do, but will we actually ask him the hard questions? Malloy will argue his plan was a balanced approach, but I say that’s a total misconception of what really happened. There were little concessions and no budget cuts at all.

From The Hartford Courant seven months ago…

A new state budget report Monday showed a steep decline in tax revenues and a widening deficit now projected at $200 million for the current fiscal year that ends June 30 — and it instantly reheated last year’s political debate over Democratic Gov.Dannel P. Malloy’s plans to fix government finances.

From WTNH five days ago.

A new report from the state’s legislative and executive branch budget offices shows Connecticut’s tax revenues are running approximately $52.7 million behind what’s anticipated in the state budget.

From Boston.com 17 hours ago, with my emphasis in bold.

Gov. Dannel P. Malloy’s budget director confirmed Wednesday the state’s budget deficit has grown to about $365 million, requiring the governor to submit a deficit-cutting plan to the General Assembly.

In testimony before the legislature’s Appropriations Committee, Benjamin Barnes said the new figure includes declines in expected state revenues and increased spending for Medicaid services. Barnes said the Office of Policy and Management has already begun work on a deficit-cutting plan for Malloy’s consideration.

‘‘While I’m not prepared today to address any elements that might or might not be included in that plan, you can expect that we will announce specifics as soon as possible,’’ he said. Malloy has said he would not support raising taxes to cover the budget gap.

Why not support raising taxes? He said revenue increases had to happen to get us out of the 2010/2011 fiscal issues in Connecticut. Well, his tax increases did not seem to help, so why not double-down and say something like “if we had not raised taxes before, imagine the difficulty we would be in now … it would be three-times as bad!”

If someone can take the time to find the actual budget table projections for expected vs. actual revenue and post the link in the comments, it would be appreciated.

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15 Responses to "Connecticut tax revenue up … Until tax increases implemented 16 months ago"

  1. SeeingRed says:

    Gee, who could have seen this coming?  Morons.  The only question remaining is can Dannel P. win reelection with more or less than a trunk full of found votes from Bridgeport next go round?

    ps – GREAT to have Jim back in the saddle!  Blessings for continued health and healing and thanks to Pastor Will for being there, keeping the theme of the show in steady-state in Jim’s absence

  2. JBS says:

    DanL P is a politician. A Democrat politician. He couldn’t get much worse. Like his D.C. buddy, tax and spend is the only thing he understands and, like Obama, he is killing this state with his policies.
    Our govenator doesn’t really care about reelection, in my opinion. Even though he has paid-off the state employees unions, a lot of those people are unhappy with him. He needs more than this state can provide.
    His sights are set on Washington. Some little job in Transportation — he is an expert on bus lines! — or perhaps something suited to his bantam-rooster style of combative, vindictive  politics. He certainly knows how to pander to unions. So, something in the Labor dept. would be good. Hey, he knows How to cripple a state! How about Secretary of State? Nah!
     
    WELCOME BACK, JIM!
     

  3. Plainvillian says:

    New England democrats – helping the South grow.

    • essneff says:

      Man, you got that right…… I’m checking out the suburbs of Charlotte NC……. property taxes on homes worth 2 times my condo’s value are considerably less than what I pay with zero car tax…. but North Carolina doesn’t have the great Dannel P. with his tax, borrow, spend, and redistribute mentality do they? Such a loss for them!

      • Plainvillian says:

        Sadly, many of the cities in NC are increasingly populated New England escapees who somehow think transplanting the politics and mores of the East will not effect their new hometowns negatively.  Look at how the cities in NC voted in the last election and compare those to the rural areas.  Do the smartest people in the  room (or state) always live in large cities?  I’m looking at a small town in NC….. even lower taxes and very friendly to Yankees.
         

  4. Dimsdale says:

    Connecticut: following in California’s footsteps?

  5. yeah says:

    Keep on trying to assert the laffer curve is bunk, hah!

  6. Dimsdale says:

    Hmmm, how much is that most “necessary” nine mile busway between New Britain and Hartford projected to cost?   $567 million?  http://www.cga.ct.gov/2012/rpt/2012-R-0367.htm

  7. chetisyourbet says:

    the biggest killer to any state budget is the pension fund for the Unionized State Govt workers from the state water dept, police force, and just eh average secretary who will retire making more money per day than they did when they worked.
    Welfare and Medical entitlements are next in line of the state budget suckers list.
    Jobs are what makes a state work and of course a balanced budget not a ba

  8. chetisyourbet says:

    not a balance tax increase

  9. Murphy says:

    From what I heard Malloy is not planning on addressing the issue. As he stated he would wait and see what the Federal Government does with their budget first. hahahahaha

  10. stinkfoot says:

    “Gee Captain Smith, I’ve never heard of a floating port city called Iceberg… but it’s full speed ahead you say?”

  11. JollyRoger says:

    What says it all is that Malloy and CT are seeking to TAX all of the folks who volunteered, some of whom drove all the way from California, to come to CT after Hurricane Sandy- restoring utilities and saving lives!  It’s reprehensible that these people should drive thousands of miles and work 18+ hour days while getting minimal sleep and risking their lives- only to have Malloy stick his dirty and desparate little hands into their pockets. 

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